§ 2429-A — Payment of insurance and development corporation credit support

New York § 2429-A

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 17: State of New York Mortgage Agency Act
• Part 2: No title
• Art. 8: Miscellaneous Authorities

Text

§ 2429-a. Payment of insurance and development corporation credit\nsupport. 1. The agency shall establish procedures to be followed by a\nmortgagee in the event of a default under the terms of any mortgage\ninsured by the agency. The agency may require that prior to submitting a\nclaim to the agency for payment of insurance the mortgagee shall take\nsuch actions with respect to the property securing the defaulted\nmortgage as may be specified by the agency to be satisfactory evidence\nof a continuing default, including but not limited to the following: (i)\nbecoming lawfully the mortgagee in possession thereof; (ii) causing a\nreceiver to be appointed of such property; (iii) obtaining voluntary\nconveyance of the mortgagor's right and title to such property; or (iv)\nobtaining by foreclosure clear and unencumbered title to such property,\nall in such manner as the agency may require. Following submission of a\nvalid claim the agency shall pay an amount which shall not exceed the\nlesser of (1) the then outstanding insured principal amount of the\nmortgage multiplied by the per centum of such outstanding amount insured\nby the agency and a per centum of the mortgagee's cost arising from the\ndefault, inclusive of public liens and delinquent and unpaid interest,\nall as the agency may from time to time allow, which per centum shall\nnot exceed the per centum of the outstanding principal indebtedness\ninsured by the agency or (2) the insured amount of the mortgage at the\ndate of execution of the insurance contract or its latest amendment, if\nany, except that the agency shall pay the greater of the two amounts on\nclaims by a public employee pension fund, or by a public benefit\ncorporation derived from the sale of notes or bonds issued by said\ncorporation, provided that no more than the actual loss suffered by such\npublic employee pension fund or public benefit corporation shall be\npaid. Such payment may be made by the agency in a lump sum, or in\npartial payments made within such period of time as may be agreed to\nbetween the agency and the mortgagee, all in accordance with procedures\nto be established by the agency.\n 2. The agency shall establish, by contract or otherwise, procedures to\nbe followed with respect to development corporation credit support for\nwhich the development corporation credit support account has been\ndetermined by the agency to be a source or potential source of payment.\n